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Why It Will Be Harder to Buy a House in 2014

9/11/2013 10:46AM

If shopping for a new home is on your to-do list you might want to get it done by the end of the year. MarketWatch's AnnaMaria Andriotis explains the restrictions potential buyers will face on MoneyBeat. Photo: Getty Images.

This transcript has been automatically generated and may not be 100% accurate.

... ay ay mm mm ... shopping for new home is on your to do list ... I wanna get it gone by in the year ... government backed mortgage lender Fannie Mae and Freddie Mac face stiffer regulation in January which could make buying a home a lot more difficult ... here to explain what restrictions potential buyers will face ... MarketWatch reporter Amery NVO this rate how are you doing well Harry am I doing right so is ... this when I saw that the mortgage applications were down deep and falling down in a few of people applying for mortgages ... but that might be the best thing you do you really wanna get a house right now right wealthier people are applying for mortgages because mortgage rates are rising ... unfortunately there are going to be a slew of new rules and regulations coming into play in January which equates to make it harder to find a mortgage than from any buy or sell ... this is actually the time right now you turn down the end of the year where you can be better off finding a more huge meaning that built the more choices ... aam ... probably better pricing and then there will be come January I explain to some these restrictions as talk first about the word is the limit on conforming loans ... further the Fannie and Freddie mortgages sounds a little confusing to explain that you're so what we now is that starting in January Fannie Mae and Freddie Mac which had been pre much that because purchases of mortgages bring down this country ... and they are planning on lowering the limits of mortgages that the buy and ... sell ... current me ... aam they're very they are backing mortgages that go up to four hundred to seventeen thousand dollars nationwide ... but in some pricier markets New York San Francisco ... those mortgages go up to sixteen to twenty five thousand ... dollars now ... buy and lowering the caps we don't know how much said in a lower than my yet the FHFA has announced that ... but by allowing the capsule will happen is your son weakening pound ... up by years who no longer qualify for these government backed mortgages and are looking elsewhere in the market to get a home loan ... problem there in that where will they go for and who is they will use those limits after the crisis hit ... so essentially going back to where things were before the recession ... right so essentially what the Chinese youth Kerry is on ... his last in the I'm gonna miss exposure and bowl in the mortgage market ... and to do that they're hoping that a scaling back on the will open the door it's the private market for marriage ... look for the problem is that the private Margate ... small was seeing some signs here in their brown but it's a really small to give you an example ... of the mortgages that were originated in April just two percent of them were sold to private investors weigh ninety percent of them were bought by the government so it's a very limited my kid and it's a market that currently favors are really only the wealthiest buyers out there idea of banks and other lenders were saying sure you know will to private mortgages but ... they have to be for the best of the bath bars meaning ... these people have the house I'm very lied to calm down payment and by ... the also need to be convinced the clients many cases people who have millions of dollars or more in assets with the Flanders style ... II hammer a good story to read it on MarketWatch